
Car makers 'in full panic' over rare-earths shortage amid China's export controls
Frank Eckard, chief executive of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated car makers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs.
Some told Eckard their factories could be idled by mid-July without backup magnet supplies.
"The whole car industry is in full panic," said Eckard, chief executive of Magnosphere, based in Troisdorf, Germany. "They are willing to pay any price."
Car executives have once again been driven into their war rooms, concerned China's tight export controls on rare-earth magnets — crucially needed to make cars — could cripple production.
US president Donald Trump said on Friday that Chinese president Xi Jinping agreed to let rare earths minerals and magnets flow to the United States. A US trade team was scheduled to meet Chinese counterparts for talks in London on Monday.
The industry worries the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from car makers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks.
Those crises prompted the industry to fortify supply chain strategies. Executives have prioritized backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls.
This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of car makers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits.
Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, Clepa.
"Sooner or later, this will confront everyone," said Clepa secretary-general Benjamin Krieger.
Cars today use rare-earths-based motors in dozens of components — side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors.
China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production, consultancy AlixPartners said.
The average electric vehicle uses about 0.5kg of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency.
China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58% of its rare earth imports.
General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs.
The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior adviser at Rhodium Group, a China-focused US think tank.
Even players that have developed marketable products struggle to compete with Chinese producers on price.
David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it was only operating at 1% capacity and would have to close next year if sales do not increase.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Irish Independent
an hour ago
- Irish Independent
Taoiseach labelling Israel's actions in Gaza ‘genocide' won't stop Central Bank approving ‘war bonds', governor tells TDs
So-called 'war bonds', which it is claimed are being used to fund the killing of innocent children and civilians in Gaza, are under intense scrutiny as a second Dáil motion was tabled to ban them. The Central Bank faced sustained questioning from TDs and senators at the Oireachtas Finance Committee, but insisted it is legally required to approve the legal document, or prospectus, required for the sale of the bonds. To be sold in the EU, bonds from non-EU countries must have their bond prospectus approved by an EU country. Israel traditionally had its European bond prospectuses approved in the UK, but turned to the Central Bank in Ireland for authorisations after Brexit. The Governor of the Central Bank, Gabriel Makhlouf, said it was 'incorrect' to claim it can impose sanctions on the processing of the bonds on the basis of international court rulings. He said it is up to international bodies including the UN and the EU to respond to breaches of international law by Israel, and to determine if sanctions are necessary. 'The Central Bank cannot impose sanctions on Israel – for example by refusing to approve the Israeli bond prospectus – in circumstances where the EU has not imposed any such sanctions itself,' he told TDs and senators. The Central Bank said its approval for Israel trading bonds in the EU is due for renewal in September. 'We will look extremely carefully at the facts that pertain at that time and will make a judgment on it,' said the Central Bank governor. A number of TDs, including Sinn Féin's Pearse Doherty and Cian O'Callaghan of the Social Democrats, said Ireland was a signatory to the Genocide Convention and this would enable the Central Bank to reject Israel's bond prospectuses. But Mr Makhlouf said the body is not bound by the Genocide Convention, but rather EU financial regulations, when deciding whether to facilitate the sale of bonds. ADVERTISEMENT The current prospectus is due for renewal again in September. 'If, when the state of Israel looks to renew its prospectus we will look extremely carefully at the facts that pertain at the time and we will make a judgment on it,' he said. But this will be based on the requirements of the financial regulations. 'The fact that the Taoiseach made the statement at the time, that is not going to change the judgement we come to,' he said, referring to Micheál Martin's comments last month that Israel is committing genocide in Gaza. Ahead of last night's Dáil vote on a Bill enabling the Central Bank to stop facilitating Israeli bonds. Sinn Féin urged government TDs to 'have a backbone'. Deputy Doherty said: 'We have to ensure the State has no hand, act or part in facilitating the sale of Israeli war bonds. These aren't just financial instruments, this is the money that is raised that pays for the bombs that pays for the bullets that pays for the destruction of the lives of men, women and children across Palestine as we speak.' Deputy O'Callaghan said while Independent TDs backing the Government had a free vote on the motion, Fianna Fáil and Fine Gael TDs had to vote along with the party whip. 'That is utterly unjust and unfair,' he said. 'If there was a free vote, this motion would pass and that would put the Central Bank under severe pressure to stop facilitating the sale of these bonds and would cut off a source of finance for the genocide that is taking place.' Labour's Conor Sheehan said: 'It is not enough to just call this a genocide. We need to make Israel an international pariah.'


The Irish Sun
an hour ago
- The Irish Sun
New Tesla Model Y is a more chiselled, quieter version of mega-seller… it moves the game on for a tech-rich family motor
I'M struggling to keep up with Elon Musk and his on/ off bromance with Donald Trump. Are they buddies again? Advertisement 6 The world's best-selling car was fugly… but two years on, it's had a sharp new makeover Credit: simon thompson 6 The cabin gets a techy glow-up with the gear selector shifted to the screen - and wraparound LEDs Credit: simon thompson 6 The new Model Y shines alongside its less attractive predecessor Credit: simon thompson Or still kicking lumps out of each other on X? One thing I do know is that Some say it's because Musk backed Trump for President, followed by that awkward hand gesture at the inauguration. Some say it's the Chinese invasion. Maybe in part. Advertisement READ MORE ROAD TESTS But mostly it's due to Tesla halting production of the mega-selling Model Y at its Now everything is sorted and sales are likely to take off like a Space X rocket. Here are ten things you need to know about the new motor. 1. The old one was fugly. Advertisement Most read in Motors That's sorted now. This new one is more chiselled. First glimpse at limited edition EV hitting UK in just weeks with slick new look It's like they've taken a photo of the The lower nose helps it slice through the air, adding a bit more range. 2. They've deleted the Tesla badge from the bonnet. Confident move. Advertisement 3. But the biggest change is at the back. There's a new reflective lightbar which highlights T E S L A written out in full. Also, the rear diffuser sticks out more. So repair bills will be lower if you reverse into something you shouldn't. Which helps with insurance too. 4. The 'frunk' — front trunk — now has a plughole in it. So you can fill it with ice for summer barbecues. Or store muddy boots . 5. Cabin. The gear selector has moved to the big screen — like a Model 3. Advertisement But they've kept the indicator stalk. Unlike a Model 3. The wrapround LED strip is new. The front seats will warm and cool your back. They didn't before. Other things. The seat bases are longer in the back. So they're more comfortable. There's a little entertainment screen to play arcade games. Advertisement The front passenger seat moves forward at the touch of a button for limo-like legroom. 6. Sound. It's now much quieter in here which makes it feel more expensive. There's extra insulation. Acoustic glass. Redesigned door seals. All little details that add up. 7. The boot is a smidge smaller. But you'll never notice. I had to look it up. Advertisement The seats now fold up and down automatically, where they only folded flat before. You had to push them back up. 8. The suspension has been tweaked so it rides better. Batteries and motors are unchanged. But improved regenerative braking tech adds more electrons. Every version should do 300 miles-plus, with the rear-wheel drive Long Range hitting 387 miles. Advertisement There's talk of a bigger battery nudging 500 miles. 9. Price. The standard rear-drive Model Y starts at £45k, which is £2k more than before. Not bad. The all-singing all-wheel drive Long Range is £52k. 10. This isn't specific to Model Y but Tesla's Supercharger network blows everyone else out of the water. Advertisement It's next-level good. Quick. Easy. No cards. No apps. And cheaper too. It doesn't really matter if you like Musk or not. If you want a minimalist, tech-rich family motor, Model Y moves the game on. 6 There's a little entertainment screen to play arcade games Credit: simon thompson 6 The old one was fugly. The world's best-selling car two years on the bounce, yes. But still fugly Credit: simon thompson Advertisement 6 Elon Musk's Tesla brand has been having a tough time recently, but sales are now likely to take off Credit: Getty KEY FACTS: TESLA MODEL Y Price: £44,990 Battery: 60kWh Power: 295hp 0-62mph: 5.9 secs Top speed: 125mph Range: 311 miles CO2: 0g/km Out: Now


RTÉ News
3 hours ago
- RTÉ News
Trump trade war - tariff deadlines & key upcoming events
The twists and turns in US President Donald Trump's tariff policies have not only rattled global financial markets but have also taken investors on a roller-coaster ride. Companies are counting the cost of the trade war that is now being estimated at more than $34 billion in lost sales and higher expenses, a Reuters analysis showed. Adding to the uncertainty are tariff-related legal challenges and Trump's assertion that he would hammer out bilateral deals with trade partners, even though agreements remain elusive, save a pact with Britain this month. Here's a timeline for key upcoming events and dates that could have a bearing on the US tariff policy: June 11, 2025 - Trump says US deal with China is done, with Beijing to supply magnets and rare earth minerals. A White House official said the agreement allows the US to charge a 55% tariff on imported Chinese goods, while China would charge a 10% tariff on US imports. The deal is subject to final approval from President Trump and Chinese President Xi Jinping. June 15-17 - Trump will attend the annual summit of G7 nations in Canada. The summit will be hosted at the Rocky Mountain resort town of Kananaskis, Alberta, with tariffs expected to be a major topic of discussion. July 8 - "Liberation Day" tariffs to take effect following the 90-day suspension period, potentially affecting imports from multiple countries.